AT&T sues Broadcom for refusing to renew perpetual license support

AT&T has filed a lawsuit against Broadcom, claiming that the company is refusing to renew support services for its VMware software licenses unless AT&T agrees to unfavorable conditions. The lawsuit, filed on August 29, 2024, alleges that Broadcom is attempting to retroactively alter existing contracts following its acquisition of VMware for $61 billion. AT&T relies on VMware to manage 75,000 virtual machines across its operations, which are critical for customer service and operational efficiency. The lawsuit states that Broadcom's refusal to renew support services, set to terminate on September 9, could lead to significant disruptions, including risks to communications for emergency services. AT&T argues that Broadcom's demands would force it to spend millions on unnecessary subscription services, which would impose additional contractual obligations. Broadcom, on the other hand, contends that AT&T is not eligible for renewal and maintains that the shift to a subscription model is standard in the software industry. The New York Supreme Court has instructed Broadcom to respond to the complaint within 20 days.

- AT&T accuses Broadcom of attempting to change VMware contract terms post-acquisition.

- The lawsuit claims Broadcom is withholding support unless AT&T agrees to costly subscription services.

- AT&T's VMware licenses are crucial for managing operations and supporting emergency services.

- Broadcom argues that AT&T's renewal eligibility is in question and defends its subscription model.

- The case highlights potential risks to public safety communications if support is terminated.